BlockData: Bitcoin (BTC) exceeds PayPal in transaction volume

Fri 26 Nov 2021 ▪ 14h19 ▪ 3 min read — by Susan McCormack

Since the beginning of 2021, the Bitcoin network has processed a larger volume of transactions in USВ than the PayPal payment system. The average figure per quarter for the decentralised network is £367 billion, while PayPal’s is £227 billion.

Bitcoin network bypasses market leaders

The Bitcoin network processed an estimated average of £367 billion per quarter in 2021, compared to PayPal’s average of £227 billion per quarter, BlockData reports. The volume of transactions conducted via Mastercard and Visa payment systems in the fourth quarter amounted to £1.35 billion and £2.4 billion respectively.

Over the 12 years of Bitcoin’s existence, the volume of transactions on the network has reached almost a third of the same indicator as Mastercard. Analysts expect that the Bitcoin network will bypass Mastercard by 2060, but further noted that “taking the current growth rate in 2021 as a metric, it could happen as soon as 2026.”

“It’s impressive how Bitcoin, as a 12-year-old decentralised network, is 27% of the way in terms of volume processed compared to Mastercard, a company founded in 1966,” BlockData analysts say.

Can Bitcoin network become “king of the hill”?

BlockData analysts have also noted that “Bitcoin is also a fundamentally different network from Mastercard and Visa. It is more of a “savings technology” than a “spending (more than you have) technology”. Naturally, they appeal to different use cases and audiences.”

Experts believe the scenario where the cryptocurrency surpasses the financial giants in terms of the transferred value to be realistic. To do this, the Bitcoin network needs to overcome a “staggering” gap in bandwidth.

“All of the publicly available statistics, such as the number of nodes in the Lightning Network (LN), the number of channels between these nodes and the amount of bitcoin in these channels, are growing at an exponential rate. If they continue to do so over the next decades, it is entirely possible that the Bitcoin network will process as many, or substantially more transactions than some of the other financial networks do,” BlockData stressed.

Arcane Research analysts project the number of Bitcoin LN micropayments active users to exceed 700 million by 2030.

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Susan McCormack

How many crypto nerds does it take to fork an altcoin? I may be a failed comedian, but crypto is no joke! I want to share my knowledge and help others to see the bright future ahead. #buybitcoin

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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